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Verizon Edge Upgrade Program Goes Live August 25

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Replying to:  Without lowering the plan price, you are being double charged for the handset. .. by yourvoiceofreason   Jul 18, 2013, 11:40 AM

Re: Without lowering the plan price, you are being double charged for the handset. ..

by jsd0108    Jul 18, 2013, 12:33 PM

The cell carriers don't want to be in the phone subsidy business. They would much rather the customer bring their phone or pay full cost for one so that they don't have to use the revenue from the plans to recoup the money from the phone subsidy. If they can do that, then that equals more profit.

It makes good business sense. The only reason that current system of subsidies was started was to give the customers an incentive (a cheap or free phone) to sign up for a service agreement. The industry is mature now so those incentives will be going away since most people feel that a mobile phone is a necessity now and not a luxury and will pay for service regardless.

These types of programs are just the next step toward eliminating traditional subsidies.

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